Snyder defends “pension tax” in special message on aging

ehow.com

June 2, 2014 | WGVU
In 2011, Snyder signed legislation that
ended the practice of exempting pensions from state income tax. He says it
wasn’t fair to tax pensions and other types of income differently. Instead, the
tax changes allowed seniors making less than 40 thousand dollars a year to
avoid paying income tax altogether. That’s whether they have a pension, a
401(k)-type plan, or if they’re still working.

“That’s much
fairer, because if someone has income – whether it’s from working or from a
retirement income – they’re all treated the same, then. And isn’t that how the
system should work?”

But
Democrats say many seniors are still losing thousands of dollars a year because
of that decision.
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